Rebar market Price Drops for the First Time in 2 Years and 10 Months

Reinforced concrete steel bar market price dropped since December 2005 around Tokyo. The price decreased by 3,000 yen per tonne or 2.7% to 110,000 yen for base size over the last week when each general contractor requested the price cutting or went easy on buying. The price rose by 43,000 yen per tonne or 61.4% from the beginning of this year and kept same level from July. There is high possible the price more rise when ferrous scrap price is continuing to reduce.

Major general contractor source said general contractors can’t purchase the rebar if the price falls below 100,000 yen per tonne, and they can’t come to a compromise if the price slightly decreases when ferrous scrap price fell below 20,000 yen per tonne from over 70000 yen. They will request more price cutting.

On the other hand, some large dealers and makers arrived at an agreement to decrease the selling price. Small dealers keep the selling price at 113,000 yen per tonne. Dealer source said the market price will drop after a short time. Some dealers have the outstanding contract amount of the rebar which is 115,000 yen per tonne. Many dealers forecast the market price decreases and are reducing the red figure by the reduction of the inventory.